2016 Section 179

Your customers can take 100% of the depreciation of the truck this year!

2016 Deduction Limit = $500,000

This deduction is good on new and used equipment, as well as off-the-shelf software. This limit is only good for 2016, and the equipment must be financed/purchased and put into service by the end of the day, 12/31/2016.

2016 Spending Cap on equipment purchases = $2,000,000

This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar for dollar basis. This spending cap makes Section 179 a true "small business tax incentive".

Bonus Depreciation: 50% for 2016

Bonus Depreciation is generally taken after the Section 179 Spending Cap is reached. Note: Bonus Depreciation is available for new equipment only.

The above is an overall, "simplified" view of the Section 179 Deduction for 2016. For more details on limits and qualifying equipment, as well as Section 179 Qualified Financing, please read this entire website carefully. We will also make sure to update this page if the limits change.

Here is an updated example of Section 179 at work during this 2016 tax year.

Many vehicles that by their nature are not likely to be used for personal purposes qualify for full Section 179 deduction including the following vehicles:

1. Heavy "non-SUV" vehicles with a cargo area at least six feet in interior length {this area must not be easily accessible from the passenger area.) To give an example, many pickups with full-sized cargo beds will qualify
{although some "extended cab" pickups may have beds that are too small to qualify).

3. Vehicles with: (1) a fully-enclosed driver's compartment/cargo area, (2) no seating at all behind the driver's seat, and {3) no body section protruding more than 30 inches ahead of the leading edge of the windshield. In other words, a classic cargo van .

*"These figures represent a potential tax scenario and should nat be considered tax advice. You should therefore always advise your customers to consult with their tax adviser regarding the exact details of the program and acquiring equipment for their particular business.